Process of Decision making

1.       Define problem: - Problem identification is initial state in decision making. Why decision is needed, what is the issue in the problem that must be clearly identified.  Problems must be clearly identified. Problems must be clearly defined. If wrong problem is defined then everything becomes wrong. Therefore, what is the problem faced by the organization. What problem is expected to be solved from decision making must be clearly defined.

2.       Collect information’s: - Information’s are vital in decision making. Without having sufficient information’s, appropriate or correct decision cannot be taken. Therefore, information related to problem must be properly collected. Where it occurred? Why it occurred? When did the problem occur? Why did it occur in that way? To whom the problem occurs? Why did problem occur to him/her? What may be the consequences of problem, if it is not solved? Information’s about all these factors should be collected.

3.       Developing alternatives: - same problems can be managed or solved in different ways. IF there are no alternatives there is no any necessity to solve the problems must be developed or identified. What are the various possibilities to solve the problems must be determined. Information of all alternatives must be collected and they must be carefully analyzed and studied.

4.       Choosing the cost alternatives: -Decision making is the process of choosing best alternative out of available alternatives. Therefore, this is the vital step in decision making process. Choosing best alternative means selecting the alternatives with the highest possible pay off. Before selecting alternatives, all alternatives available must be evaluated and studied on the basis of cast benefit analysis, resource availability, feasibility, etc. After evaluating alternatives best alternative must be selected. Basic factors which must be considered while selecting best alternatives are,

a)      it must be less expensive,

b)      It must take less time

c)       It would be more effective

d)      It should be preferred by employees

e)      It should generate more profit

f)       It should generate greater productivity

5.       Implementing the decision: - When best alternative, is selected that becomes decision. Implementing the decision means putting the decision into action. Now, if the decisions are not implemented properly, there is no meaning of making decision. To make decision is important but implementing decision in time is more important. Implementation of decision means action at work has started. To implement some decisions are easy and some are very difficult. To implement decision successfully commitment from top management, supporting staff, sufficient resources are required. Decision when is implemented, employee may resist decision. Because, decision making may change the role of employees, duties and responsibilities of employees and place of work of employees. It is the responsibility of management to so to convince them.

6.       Evaluating and controlling: - This step is also important. After implementing decisions the progress must be monitored and their success must be evaluated. Whether the decisions are properly implemented or not. Whether the decisions are going to achieve their objective or not. Whether the decision need any correction or not. What is the weakness in implementation of decision must be properly evaluated. Control compares target and performance of decision and takes corrective action. This step provides feedback to the decision makers.